Backpack acquires FTX EU

GRVT Debuts zkSync’s Inaugural ‘Hyperchain’GRVT, the hybrid crypto exchange incorporated in the British Virgin Islands, is all set to debut as zkSync’s inaugural “hyperchain,” marking a significant milestone in the zkSync ecosystem’s evolution.zkSync represents Ethereum’s second layer solution offering cheaper and faster transactions.Photo by Shubham Dhage on UnsplashCombining CEX and DEX qualitiesPronounced “gravity,” GRVT is an innovative platform that attempts to seamlessly blend the advantages of centralized and decentralized exchanges. It promises users a Robinhood-like experience while integrating self-custodial features akin to Uniswap-style exchanges. Matter Labs, the developer brains behind zkSync, shared news of GRVT's imminent project milestone in an interview with The Block.The introduction of GRVT as the first Hyperchain within the zkSync ecosystem has broadened the horizons of potential applications for this technology, according to Matter Labs. The project stated:“There is nothing like GRVT being built, not in the zkSync ecosystem nor outside of it. By being able to design and deploy custom hyperchains connected through hyperbridges, teams like GRVT’s can build entirely new use cases.”The ability to design and deploy custom hyperchains connected via hyperbridges opens the door to entirely new use cases, affording projects like GRVT the freedom to explore innovative possibilities.A layer 3 ValidiumGRVT will play a role as a Layer 3 Validium within the zkSync ecosystem. Validiums are Ethereum scaling networks that bear similarities to zk-rollups found in Layer 2 solutions. The critical differentiator is in how they handle data. Zk-rollups maintain data on-chain, whereas Validiums securely store it off-chain. This approach enhances user security by safeguarding against front-running and market manipulation.GRVT’s alpha version is set to make its debut next month, followed by the mainnet release in the first quarter of the upcoming year. Promising a transaction speed of up to 600,000 trades per second and less than two milliseconds of latency, GRVT leverages zkSync’s “horizontally scaling” infrastructure to deliver enhanced performance.Explaining the concept of horizontally scaling, Hong Yea, GRVT’s co-founder and CEO, told The Block:“Horizontally scaling means to deploy additional underlying pairs as new hyperchains. Say BTC/USDT perpetual futures is one hyperchain and so on. And we can look to add other infrastructure components like this as new hyperchains to scale throughout, as they can interoperate. This allows high-frequency traders to trade more efficiently with high transactions per second similar to a central exchange.”Token launchGRVT enjoys the backing of CMS Holdings, Hong Kong’s digital assets wealth manager Metalpha, alongside Matter Labs and others. Yea founded the company alongside CTO Aaron Ong and CCO Matthew Quek. Although incorporated in the British Virgin Islands, the firm employs people who are based in Hong Kong, the UK, Lithuania, and Singapore.It recently disclosed that it had successfully raised $7.1 million in pre-seed and seed funding in an equity with a token warrant round, achieving a $39 million post-money valuation. The launch of GRVT’s token is anticipated in 2024.GRVT is also making a concerted effort to obtain trading licenses in various jurisdictions. Currently, it has attained a virtual asset service provider (VASP) license in Lithuania, with work ongoing to achieve licensing in Bermuda. The firm hopes to then expand in Europe and the Middle East going forward.

Despite Bitcoin’s recent decline, a South Korean analyst says investors’ trust in the market remains intact. He added that a U.S. crypto market structure bill, which Congress could approve as early as December, may give investors a chance to buy the dip ahead of a potential rebound. According to Etoday, Hong Sung-wook of NH Investment & Securities, one of South Korea’s major brokerage firms, noted that the crypto market has given back all gains made since mid-October, with Bitcoin briefly slipping below $100,000. Most altcoins also saw steep declines, erasing the advances they posted following roughly $19 billion in liquidations around Oct. 10. In this environment, Solana’s year-to-date performance has turned negative despite the recent launch of spot Solana ETFs in Hong Kong and the U.S., while Ethereum has similarly surrendered its earlier gains.Photo by Michael Förtsch on UnsplashContext from past declinesHong framed the latest pullback in a historical context. Since 2018, Bitcoin has recorded a daily closing price drop of more than 20% on seven occasions. The latest decline of about 21% from peak to trough, he said, is broadly in line with previous downturns. He added that Bitcoin is now less likely to experience the extreme volatility seen in earlier years, citing growing institutional participation and its increasing use in so-called “debasement trades,” or hedges against fiat currency inflation. Building on this, Hong attributed the recent weakness primarily to the liquidation wave and the temporary hit to sentiment. However, he argued that confidence could recover faster than in past stress events, emphasizing that trust in the market has not been fundamentally damaged, unlike in prior downturns triggered by unexpected “black swan” shocks. Policy progress could lift market moodIn the near term, Hong pointed to progress on the U.S. crypto market structure bill as a potential catalyst. Further movement on the bill, he said, could help improve sentiment, similar to the supportive reaction seen around the passage of the stablecoin GENIUS Act. Other market observers have expressed a comparable view on Bitcoin’s outlook. BeInCrypto underscored three key factors supporting its stance in an analysis published on FXStreet. First, citing Glassnode’s Accumulation Trend Score, it noted that Bitcoin has managed to hold above the $100,000 level thanks to a balance between whale sell-offs and continued accumulation by other investors. Second, expectations for U.S. interest rate cuts projected for December are seen as another supportive element. Third, Bitcoin continues to trade above its 50-week moving average (WMA), a technical level that has underpinned the market since BTC moved above it in 2023; even when brief sell-offs have pushed prices below this line, buyers have stepped in to restore it by the weekly close. Warning signs of weakening momentumAt the same time, signals of moderating momentum have emerged. Another BeInCrypto report pointed to CryptoQuant’s Bitcoin Bull Score, an on-chain metric that gauges the asset’s upside potential, which fell to zero on Nov. 6, its lowest level since January 2022, just before the market entered its last major bearish phase. This more cautious tone is reflected in institutional forecasts as well. Crypto financial services firm Galaxy Digital last week lowered its year-end price target for Bitcoin from $185,000 to $120,000. The firm cited heavy whale sell-offs, shifting investor focus toward AI, gold, and stablecoins, and the weak performance of Bitcoin-focused digital asset treasury (DAT) companies as key reasons for its downgrade. Even so, Galaxy Digital said it continues to view Bitcoin as a structurally strong asset.From a longer-term perspective, some high-profile experts have also trimmed their expectations. According to Decrypt, Ark Invest CEO Cathie Wood told CNBC she now sees Bitcoin reaching about $1.2 million in a bullish scenario by 2030, down from her previous $1.5 million target. She attributed the revision mainly to the rapid growth of stablecoins, which are expanding faster than Bitcoin and emerging as a new payment method, a trend she suggested could dilute some of Bitcoin’s potential price momentum over time.

Sony Bank, a Japanese neobank headquartered in Tokyo, has applied to the U.S. Office of the Comptroller of the Currency (OCC) to establish a new trust bank, Connectia Trust, as part of a broader expansion into digital assets. According to Sony Bank’s application, if approved, Connectia Trust would issue U.S. dollar–pegged stablecoins and manage the corresponding reserves. The entity would also offer non-fiduciary custody of digital assets and provide fiduciary asset-management services for certain affiliates.Photo by P. L. on UnsplashSony among 11 crypto applicants to the OCCSony Bank’s filing is among 11 crypto-related applications before the OCC, alongside efforts by Coinbase, Nubank, Paxos, BitGo, Ripple, and others. To date, only two banks have advanced through the agency’s charter approval process. In 2021, the OCC conditionally approved the conversion of Anchorage Trust Company into Anchorage Digital Bank, granting it a national trust bank charter. More recently, last week, Erebor Bank, backed by PayPal co-founder Peter Thiel, received preliminary conditional approval for its de novo charter. The initiative reflects Japan’s growing openness to cryptocurrencies, underscored by the government’s recent regulatory approval of the country’s first yen-denominated stablecoin. Fintech firm JPYC Inc. plans to launch “JPYC” this fall, pegged at 1 yen per token and designed for person-to-person transfers and retail payments, with plans for point-of-sale integration. The issuer targets up to 10 trillion yen ($66.7 billion) in circulation within three years. There are no limits on holdings or wallet transfers, while redemptions are capped at 1 million yen ($6,700) per user per day. Sony Bank has been building its Web3 capabilities this year. Its board approved a new subsidiary for blockchain initiatives in May, later renamed BlockBloom in August. Now operational, BlockBloom aims to connect fans and artists and bridge digital and physical experiences, as well as fiat and digital assets. Its ultimate parent, Sony Group, launched a blockchain mainnet called Soneium in January through Sony Block Solutions Labs, S.BLOX, and SNFT. Built as an Ethereum layer-2 network powered by Optimism’s Superchain technology, Soneium recently announced support for meco.fun, a SocialFi platform that enables creators to earn through memes, content, and NFTs. MUFG’s blockchain initiatives at home and abroadJapan’s top traditional banks are also expanding their involvement in digital assets, with a growing focus on stablecoins. An Oct. 17 Nikkei report, cited by CoinDesk, said Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group, and Mizuho Financial Group aim to develop a unified system to issue and transfer stablecoins among corporate clients. Their first rollout will focus on yen-pegged tokens, followed by a potential dollar-based offering. According to an earlier report from Reuters, MUFG and nine other major international banks, including Bank of America, Deutsche Bank, Goldman Sachs, and UBS, are collaborating on stablecoins tied to G7 currencies. MUFG has additionally rolled out a blockchain-based business with Mitsubishi UFJ Morgan Stanley Securities (MUMSS), which is offering bond security tokens and operating ASTOMO, a trading venue for retail investors that has debuted with tokens backed by real estate. The platform lets users invest from 100,000 yen (about $667) on their phones. In summer, MUFG’s trust unit, Mitsubishi UFJ Trust and Banking, acquired a high-rise building in Osaka for more than 100 billion yen ($667 million), with plans to issue digital securities tied to the asset. The tokenization strategy would offer fractional ownership to retail investors long excluded from major real estate opportunities. Taken together, Sony Bank’s OCC application and Japan’s accelerating tokenization efforts signal a race among major financial and technology players to build compliant, scalable infrastructure for digital assets—both at home and abroad.